This invention relates generally to processing transactions associated with financial transaction card accounts and, more particularly, to network-based methods and systems for processing financial transactions using a co-brand proprietary financial transaction card through a multi-party payment card interchange and identifying whether the transaction should be processed as a proprietary private label transaction or as a network branded transaction.
At least some known merchants accept payment for goods and services using more than one type of financial transaction card systems. One type may be a multi-party transaction system where transactions are processed through a multi-party transaction system interchange. Another type may be a private label transaction system where merchants are directly communicatively coupled to a payment card issuer for transaction processing. Still another type may be a co-brand proprietary transaction system. For example, some merchants accept Visa®, MasterCard®, Discover®, and/or American Express® financial transaction cards. Some merchants also accept a private label financial transaction card, such as a Macy's®, Home Depot®, or other retail merchant card. Generally private label transaction systems are closed to transaction data being transmitted on the private label transaction systems that is not associated with a private label transaction. As such, less identification of the merchants and transaction information is required.
To facilitate processing, issuers may determine that switching their private label portfolio transactions and/or co-brand proprietary transactions through the multi-party transaction system interchange improves response times and/or cost benefits. Currently, merchants are typically directly connected to the issuers that manage the private label transactions originating from co-brand proprietary financial transaction cards, and the transactions are processed in a closed-loop manner. Because of the closed nature of their current private label processing environment, issuers know that the transactions they receive come from their co-brand partner's location (a participating merchant). However, with a multi-party transaction system interchange, issuers need to be able to determine if a transaction occurring on a co-brand proprietary transaction card is originating at a participating or non-participating merchant location to be able to properly direct each transaction for processing.